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Geregu Power Plc, a power-generating company owned by Nigerian billionaire Femi Otedola, has seen its market capitalization rise by over $180 million in the past six days.
The increase comes after The Fund for Export Development in Africa (FEDA), an investment platform of the African Export-Import Bank (Afreximbank), acquired a minority stake in the power-generating company.
Geregu Power, which has a capacity of more than 430 megawatts, is a major player in Nigeria’s power sector and will be supported by FEDA as it moves to expand both its capacity and operation.
The Afreximbank’s development impact investment platform aims to provide capital for intra-African trade, export development, and industrialization on the continent.
According to data tracked by Billionaires.Africa, shares in the power-generating company on the Nigerian Exchange (NGX) were trading at N149 ($0.333), a 29-percent increase from the group’s share price on Dec. 28 when the FEDA deal was announced.
As the pioneer power company on the NGX, the acquisition is a significant move for both Nigeria’s energy sector and Africa’s overall industrialization and trade.
FEDA’s acquisition of a minority stake in Geregu Power is part of its efforts to support Africa’s energy sector, including renewables and transition fuels.
The recent rise in Geregu Power’s share price on the local bourse has led to a market capitalization increase of N83.75 billion ($187.12 million) from N288.75 billion ($645.1 million) on December 28 to N372.5 billion ($832.26 million) at the time of writing.
Since listing its shares on the NGX on Oct. 5 at a price of N100 ($0.231) per share, Geregu Power’s market capitalization has now increased by $273 million. This recent surge demonstrates the potential for growth and investment in Africa’s energy sector.
